Echo Inc., which has a 21 percent U.S. tax rate, plans to expand its business Into Country J. It could open a branch office, or it could create a foreign subsidiary in Country J. The branch office would generate $5,000,000 Income in year O. The foreign subsidiary would incur incremental legal costs and, as a result, would generate only $4,750,000 income in year 0. This Income would be taxed at Country J's 15 percent corporate rate. Any repatriation of the subsidiary's earnings would qualify for the 100 percent dividends- received deduction a. Assume none the subsidiary's earnings would be considered GILTI or subpart Fincome calculate the NPV of the Year after-tax foreign source Income from opening a branch office or forming a foreign subsidiary b. Should Echo open the branch office or form the subsidiary to maximize year after-tax foreign earnings? Complete this question by entering your answers in the tabs below. Required A Required B Assume none the subsidiary's earnings would be considered GILTI or subpart income, calculate the NPV of the Year 0 after tax foreign source income from opening a branch office or forming a foreign subsidiary After Tax Foreign Source Income Opening a branch office Forming a subsidiary